Analysis of Wal-Mart’s strategy

1. Why did Mexico make suck a good proving ground for Wal-Mart’s foreign expansion strategy?
Answer：
Considering the environment of politic and economic of Mexican in 1990s, it provided Wal-Mart good opportunity to expand its business. There are main three factors as follows:

l Firstly, when Wal-Mart considering expanding global market, U.S.A. at the same time was entering negotiations with Mexico and Canada about the North American Free Trade Agreement. This spurred the interests of Wal-Mart to develop its business in neighbor’s market.
l Secondly, the leader of Mexico, Carlos Salinas, who was a Harvard-trained economist, advocated free market reforms and privatized those State-owned enterprises in Mexican. This created nicer investment environment to Wal-Mart.
l The tight monetary policy lowered inflation rate into the single digits in Mexican.

All of these would be bring good opportunities to Wal-Mart for its strategy to enter Mexicanââ...